The release of national weekly unemployment insurance claims data shows that initial claims for unemployment insurance (UI) are 92 percent lower than this time last year in North Carolina.
The continued decline week-over-week similarly points to the continued improvements in the labor market and the important role UI plays in ensuring jobless workers stay engaged in the labor market and looking for work.
“North Carolina’s unemployment system is the first line of defense against people leaving the labor force out of frustration that too few jobs are available,” said Alexandra Sirota, Director of the Budget& Tax Center, a project of the NC Justice Center. “For more than 467,000 North Carolinians our state system fell short, failing to sustain them until their job searches resulted in employment.”
New research from the Economic Policy Institute points to the critical role that federal extensions of UI eligibility and the number of weeks have had in North Carolina, as well as the heavy reliance in our state on those programs to stabilize the economy. Federal UI provided more than 80 percent of the unemployment benefits in North Carolina, which went a long way to stabilizing household budgets, local commerce, and state revenue.
In North Carolina, the Pandemic Unemployment Assistance program, which reaches those who would otherwise not be eligible for state UI, such as the self-employed or those on contracts, provided wage replacement during the week ending April 24th to more than 83,000 North Carolinians.
UI must be the foundation of the state’s work to ensure people get back to good, family-sustaining jobs. Right now, national data show that despite improvements in the number of job openings economy-wide there are still 12 workers officially counted as unemployed for just 10 job openings. Moreover, well-documented barriers—including here in North Carolina—point to the real barrier of childcare faced by a significant share of the labor force, which makes it difficult for every worker to return to their jobs.
“Unemployment Insurance is one of the most effective tools we have to support the economy to recovery,” said Bill Rowe, Deputy Director of Advocacy at the NC Justice Center. “The key is to provide adequate wage replacement for those who have lost employment until the labor market has the quantity and quality of jobs that ensure workers can go back to work.”
Julia Hawes is the Director of Communications for the N.C. Justice Center.